Rampant inflation and climate crisis: can cash cope? - Grouth Truth Solutions/factfoundation

Key findings

 01 · Inflation and the cost of living drive modality preferences 

People tend to prefer vouchers in a time when prices are frequently changing. Food security is currently the main priority. When resources are limited, people are nervous about wasting their cash on non-priority items and say they do not trust themselves to spend cash diligently. Most do not currently receive payments from the national or state social safety nets, but they would be keen if such payments were available. 

02 · People want more support from humanitarian actors in managing their cash 

In the current economic climate, people rate the safety of banks highly and they want support in opening bank accounts. Insufficient funds are a major barrier to opening accounts, as are transport costs, financial and digital literacy, and regulatory requirements. People want humanitarian stakeholders to offer training in managing personal finances, accessing bank accounts, and setting up and running businesses. People also want bank agents and government officials to visit their communities to register them for bank accounts and national ID documents, respectively. 

03 · Managing resources is impeded by a lack of information

 Information on how long cash and voucher assistance will last, and how humanitarian actors decide who receives assistance, is lacking. This follows a concerning trend from previous years. Despite these information gaps, generally people still feel that CVA providers’ activities are transparent. People feel that aid is provided fairly and to those who most need it, but unregistered people and new arrivals are most commonly cited as excluded. 

04 · People have participated in various ways, and they want more

 People want to participate in the design and implementation of CVA programmes, but opportunities are scarce. Those that have managed to participate recount a variety of different ways they have done so. Some participated in an operational sense, assisting with distributions, organising queues, and sharing information with community members. Others participated substantively, attending community engagement meetings, providing feedback, and identifying target community members. 05 · Anticipatory cash in Adamawa helps, but is not enough Cash transfers to flood affected communities work best when coupled with detailed forecasting and information on how people should prepare themselves. While the cash was appreciated and aided preparations and recovery, declining purchasing power restricted how far the funds could stretch. People want longer-term support to enable them to invest in dry season farming materials, which are less vulnerable to flooding.

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